Clarification on availability of input tax credit as per clause(b) of sub-section (2) of section 16 of the Andhra Pradesh Goods and Services Tax Act, 2017 in respect of goods which have been delivered by the supplier at his place of business under Ex-works Contract

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.... 2017 in respect of goods which have been delivered by the supplier at his place of business under Ex-works Contract - reg. Ref: Central Circular No.241/35/2024-GST, dated 31.12.2024 issued by the Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi. **** ORDER: Reference has been received from automobile sector seeking clarification on availability of input tax credit (hereinafter referred to as "ITC") as per clause (b) of sub- section (2) of section 16 of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "APGST Act") in respect of goods which have been delivered by the supplier at his place of business under Ex-Works Contract. 1....

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....section 168 of the APGST Act, hereby clarifies the issue as below. 3. Sub-section (2) of section 16 of the APGST Act is a non-obstante clause to section 16 of the APGST Act which enlists the conditions, failing which the registered person is not entitled to ITC in respect of supply of goods or services or both. One of the conditions as per clause (b) of the said subsection (reproduced below) is that a registered person is not entitled to claim ITC in respect of any supply of goods or services or both unless he has "received" the said goods or services or both. The Explanation to the said clause provides for deemed receipt of goods and services in certain scenarios. " Section 16. Eligibility and conditions for taking input tax cr....

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....nput tax credit was allowed on purchase of goods. 3.2 Explanation to clause (b) of sub-section (2) of section 16 of the APGST Act provides that the goods would be deemed to have been "received" by the registered person for the purpose of this clause, where: a) the goods are delivered by the supplier to a recipient or to any other person on the direction of such registered person, whether acting as an agent or otherwise; b) such direction may be given before or during movement of goods; and c) the goods may be delivered either by way of transfer of documents of title to goods or otherwise. 3.2.1 The said Explanation provides that where goods are delivered by the supplier to any other person, whether act....

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.... can be considered to have fructified at the factory gate of the OEM, even though the goods may be physically received by the registered person (the dealer) after the transit period. Accordingly, it is clarified that as per Explanation to clause (b) of sub-section (2) of section 16 of APGST Act, the registered person (the dealer) can be considered to have "received" the said goods at the time of such handing over of the goods by the supplier to the transporter, at his factory gate, for their onward transmission to the said registered person (the dealer). 3.4 The same principle is applicable in respect of supply of other goods also where the contract between the supplier and recipient is an EXW contract, and as per terms of the contract, ....